Image enhancement is a challenging task in image analysis particularly, it is more challenging in performing image fusion. Image fusion is the process of combining multiple images to produce quality output without any variation in contrast, blurring, and noise. Many image fusion algorithms have been implemented, but their final fused images suffer from variations in background contrast, uneven illumination, blurring, and the presence of noise. To overcome the aforementioned issues, this paper proposed a new image fusion method, which improves image contrast and also gives appropriate details of the image. Our method is based on a set of conventional techniques such as amalgamated histogram equalization and fast gray-scale grouping to handle the problems mentioned, and we improve overall fusion strategies by proposing a novel principal component analysis technique to convert RGB types images to high gray-scale contrast image as the final output image. We have carried out many experiments on different common databases used by various researchers. Our proposed method gives good subjective and objective performances compared to other statuses. Our proposed method can be used in different monitoring applications. INDEX TERMS Histogram equalization and fast gray-level grouping (HEFGLG), Image Fusion, Multifocus image, Infrared image, Visible image, Average pixel intensity, Cross Correlation.